If you’ve been thinking about how to become a partner at a legal firm, you’ve come to the right place. This article will help you learn more about the partnership track, which includes equity and non-equity partners. Non-equity partners are the ones who manage client relationships. They also determine goals and compensation, and enjoy job security. Read on to discover more about this exciting and challenging career path.
Non-equity partners manage client relationships
Many equity partners are bloated, and that’s a problem, because a bloated partnership ranks can constrain profits in the short term, harm the development of young lawyers, and compromise the success of a law firm. But if your firm is small, non-equity partners are an essential part of the team and should be paid appropriately. Here’s how to choose non-equity partners.
Firstly, non-equity partners may be older equity partners, or experienced lawyers without a desire to own the firm. While some of them will inevitably become equity partners, many firms should be careful not to make this group too large. Not only will this limit the opportunity for high-potential associates, it can also damage morale. Some non-equity partners may be perceived as “protected class” members and, therefore, will not be held to high standards, check more details here.
They Determine Goals
Most attorneys define goals when they become partners in a law firm. Typically, these goals revolve around the revenue generated by the firm and the annual salary of the partner. However, some attorneys also have other types of goals, such as improving client experience and technology use. Some even want to make an impact in the community. These are merely a few examples. Nevertheless, there are many more options available to attorneys.
Lawyers often neglect to think about personal goals, which are just as important as their professional development objectives. Setting personal goals is crucial to create harmony and balance in one’s life. These may include health and exercise goals, attending your kids’ sporting events, spending time with friends and family, or even developing hobbies or passions that go beyond work. For example, lawyers who have families and children should take time to devote to those outside their firm.
They Determine Compensation
The majority of large law firms have shifted away from lockstep systems to subjective evaluations. This is largely because of the fact that what gets measured gets done. In the past, firms relied heavily on formulas to determine partner compensation. However, recent changes to compensation policies are encouraging a shift away from this formula-based approach. Rather than focusing solely on objective measures, firms are increasingly using qualitative assessments of partners to set partner compensation.
One of the most important principles of a firm’s compensation scheme is its ability to reward desired behavior and efforts. Incentives for fee production are not enough for many firms. Partners need to contribute to marketing, mentoring, and firm management if they are to maintain profitability and build a successful firm. With a “firm first” philosophy, partners will be incented to focus on firm management rather than on fee production.
They have Job Security
In a globalized economy, job security is not always a given, especially for lawyers. In the past, partners were protected from the threat of layoffs, but this is no longer true. In-house counsel have been hit hard by the recent economic crisis, and the former general counsel of the video game division of Sony fell out of favor within a year of being hired. The plight of lawyers has increased, but many firms have rebounded to stay in business.
Conclusion
When you work in a law firm, you are constantly working alongside other attorneys. As such, there is always the risk of being treated unfairly by a supervisor. Furthermore, you are often beholden to a business-generating associate. In such an environment, job security is not the main goal. Working on your own, however, provides a unique type of security. You will be responsible for balancing your workload and running a successful business, rather than reporting to a superior.